Legal Question in Wills and Trusts in California

Inheritance Limits

If you have a trust, but limited beneficiaries not immediatge family (wife & Children), but extended family (Aunt, 1st cousin)and friends, is there a limit as to how much you can leave them in a given year to avoid taxes on the inheritance? How much? Does the amt include IRA's?

My goal is to distribute the trust assets as fast as possible with as little taxation.

Would it be better to leave charities appreciated IRA accts, or appreciated stock portfolios, or cash?

Would it be better to leave the above to people? How would you divide it up...generally.

Thank you


Asked on 10/18/04, 5:45 pm

1 Answer from Attorneys
Scott Linden Scott H. Linden, Esq.

Re: Inheritance Limits

you can make gifts to any person in any year up to a maximum amount of $10,000.

I am not sure if that is what you were asking. Perhaps you should read a bit of the information I provided on our firm's site www.No-Probate.com regarding different types of trusts.

Because there are so many different ways to distribute assets, there really is no true decisive way to answer your question.

For some a QPRT would be best for others a QDRO. On many IRA and life insurance policies, you can name a beneficiary. Other instances a chritable remainder trust with lifetime income may effectuate your desires; it really all depends.

If you have a more specific plan of distribution, I would be happy to discuss your various options with you. Please feel free to contact me through the site named above or directly at 626-578-0708.

Scott

Read more
Answered on 10/19/04, 8:14 pm


Related Questions & Answers

More Probate, Trusts, Wills & Estates questions and answers in California